The Business Year

Andrew Smith

UAE, DUBAI - Finance

Here to Help

CEO, RAK National Insurance


Andrew Smith graduated from the Institute of Islamic Banking while concurrently working on his Masters of Science in Development and Performance Management at the University of Leicester. He has worked for publicly listed multinational companies and privately owned businesses over his 30 years of professional experience.

TBY talks to Andrew Smith, CEO of RAK National Insurance, on the company's four-decade history in the UAE, fostering awareness, and the sector's near future.

Ras Al Khaimah National Insurance Company (RAK Insurance) has been present in the UAE for almost 40 years. What are some of the recent milestones that the company has achieved this year?

In terms of what we have achieved this year, there are clearly a couple of highlights. We were selected as one of the seven participating insurers for Dubai’s mandatory health insurance scheme, which is a significant achievement for us as an organization. Another milestone going into 2015 was the planned majority share acquisition by National Bank of Ras Al Khaimah (RAK Bank). The UAE is a highly competitive market with over 60 insurers. Having a partner like RAK Bank will add value to RAK Insurance, allowing us to increase distribution capability and affording us the opportunity to move into new markets and offer new products. The third milestone this year has been to introduce a new online distribution channel. Clients will be able to go online and buy a range of insurance products and obtain valuable service offerings. On top of that, we have been going through a transitional period as an organization. We set a new strategy for the company in 2013, which runs through to 2017.

What are the main focuses in terms of products?

As a company, we are a composite insurer, which means that we sell both life, medical, and general insurance products to corporate and retail clients. Moving into 2015 and beyond, we will be looking to expand our footprint in the retail sector. In that respect, our product range will become more focused, specific to each and every need of a client, with an eye on simplifying the structure and pricing of the products. We are also making it easier for clients to shop for products.

How would you describe the main pillars of your growth strategy, and how it will impact RAK Insurance?

The initial focus has been on adopting a multi-channel approach to distribution. We are working closely with brokers, looking at bancassurance, corporate, retail, and e-commerce, as well as building for the first time, our own direct sales force. We are beginning a multi-channel of distribution, repackaging or restructuring our product offerings, and making it easier for a client not only to buy the product, but for them to understand what they are buying. We went through a complete transformation in terms of our brand in May 2013. Our brand was the starting point because we want to be seen as a different insurer, appealing to a more affluent sector of the market.

What impact do you believe mandatory health insurance will have on the health insurance industry as a whole?

As the population in Dubai continually increases, especially within the expatriate population, the need for health insurance is becoming more and more a necessity, not only from an employee’s perspective, but also from the perspectives of employers and the government. I think the Dubai Health Authority (DHA) has done a good job in developing the initial structure and putting in place what will be a world-class healthcare offering. The DHA and the Participating Insurers will now learn and adjust accordingly.

What are your expectations for the insurance industry going forward?

I believe there is continuing opportunity and optimism in the foreseeable future, but again, as I mentioned, pricing is becoming a challenge, as well as profitability for some companies. I believe regulation has a major part to play as the insurance industry moves forward and becomes more mature. Unlike Saudi Arabia, which is well regulated by the Saudi Arabian Monetary Agency, the regulator in UAE is working through a number of challenges that the sector faces. Although there is significant market opportunity, I believe competition is very strong, while pricing is weak, and there is over capacity in the market as well. Companies that want to succeed will have to deliver better quality products and better quality services, and they are going to have to become much more consumer focused than they have been in the past.



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